Adventa 1Q earnings fall on margin squeeze, forex loss

KUALA LUMPUR (March 26): ADVENTA BHD [] posted a weaker set of financial results for the first quarter ended Jan 31, 2012 with net profit falling 33% to RM2.71 million from RM4.05 million as it was impacted by margin squeeze, foreign exchange loss and higher finance cost.

It said on Monday its revenue slipped 2.2% to RM103.81 million from RM106.19 million while earnings per share were 1.77 sen compared with 2.65 sen.

“The group’s revenue dropped 2% over corresponding quarter due to a reduction in orders for latex examination gloves as many markets are switching to synthetic nitrile material.

“Although the group has new nitrile exam gloves manufacturing capacity, it is insufficient to meet the change in demand,” it explained in the notes to the accounts.

Adventa said the examination gloves segment performed well in comparison with the other segment as nitrile gloves offset the loss in latex examination gloves orders.

“Nitrile gloves continue to increase in usage in developed countries, replacing natural latex gloves. This phenomenon is expected to continue. The surgical gloves segment lagged more than expected, with lower operating margin in comparison. This segment, ever sensitive to currency fluctuation and material cost will improve with more stable latex prices,” it said.

Adventa was more upbeat about the next three quarters as it expected an improvement in sales compared to the first quarter, with more nitrile glove capacity coming on stream.

While it said latex gloves remain weak, it expected the dental gloves segment to maintain its contribution. As for raw materials, it expected prices to stabilise in the third quarter.



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Mah Sing in RM830m property project in KK

KUALA LUMPUR (March 26): MAH SING GROUP BHD [] has proposed a commercial property project in Kota Kinabalu’s central business district with a combined gross development value of RM830 million.

It said on Monday its unit Capitol Avenue Development Sdn Bhd had signed a joint development agreement with Paduan Hebat Sdn Bhd to jointly develop a 4.26 acres of prime leaseholde commercial land.

“Under the terms of the agreement, Paduan Hebat agrees with Capitol Avenue to jointly develop the land for an entitlement of RM39 million or approximately RM210 per square foot,” it said.

Mah Sing said Capital Avenue also had the exclusive option to jointly develop with Paduan Hebat another two parcels of adjacent commercial land, measuring 4.408 acres at an entitlement price of RM216.00 per sq foot or RM41.5 million.

It said based on preliminary plans, the proposal was a niche development with an estimated gross development value of approximately RM360 million for the 4.26 acres land and RM470 million for the 4.408 acres option Land.

“Tentatively called Sutera Avenue, the proposed joint development comprises multi-storey shop offices fronting the coastal highway and complemented by street mall retail lots as well as serviced apartments.



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Amanah Raya Devt sells 22% of Lakehill Resort to MPCorp for RM110m

KUALA LUMPUR (March 26): Amanah Raya Development Sdn Bhd is selling its entire 22% stake of Lakehill Resort Development Sdn Bhd to MALAYSIA PACIFIC CORP BHD [] (MPCorp) for RM100.88 million.

MPCorp said on Monday that Amanah Raya Development had exercised its put option to sell the stake to MPCorp’s unit Oriental Pearl City PROPERTIES [] Sdn Bhd. The payment would be made in 60 days.

“Under the circumstances the company and/or Oriental is now at liberty and sole discretion to negotiate with other new strategic partner(s) of their choice,” saud MPCorp.



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BLand 3Q profit down 93% on-year to RM2.52m

KUALA LUMPUR (March 26) : BERJAYA LAND BHD []’s (BLand) net profit fell 93% to RM2.52 million in the third quarter ended Jan 31, 2012 from RM34.91 million a year ago, as lower real estate sales offset higher income from its gaming and hospitality operations.

BLand said on Monday its total group revenue rose 13% to RM1.12 billion from RM990.6 million.

“Given the uncertain economic outlook, the directors are of the view that the group's performance for the remaining quarter of the financial year ending April 30, 2012 will be challenging,” BLand said.

Its cumulative nine-month net profit fell 97% to RM2.92 million against RM85.13 million in the previous corresponding period although revenue was up 4% to RM3.11 billion from RM2.99 billion, the company said.



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CBIP secures RM44.66m palm oil refinery project

KUALA LUMPUR (March 26): CB INDUSTRIAL PRODUCT HOLDING [] Bhd has secured a RM44.66 million contract from Kumpulan Perladangan PKINK Bhd to build a palm oil mill.

CBIP said on Monday its unit Modipalm Engineering Sdn Bhd was awarded a contract by PKINK’s unit Syarikat Ladang Sungai Terah Sdn Bhd to design and build a mill with a capacity of 30 tonnes per hour at a cost of RM42.61 million.

It said the contact included the extension of another 15 tonnes per hour capacity valued at RM2.05 million.

It added the extension had to be undertaken within two years after the 30 tonnes per mill had been handed over.



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KLCI reverses gains, slips into negative territory

KUALA LUMPUR (March 26): The FBM KLCI slipped and closed in negative territory on Monday in line with most of the key regional markets that reversed their earlier gains and fell in later trade, extending losses after weak PMI reports last week stoked fears that China's economy was slowing and the euro zone is sliding into recession.

The FBM KLCI fell 2.85 points to close at 1,582.98, weighed by losses at index-linked PLANTATION [] stocks and select blue chips including Tenaga and MISC.

At the regional markets, Taiwan’s Taiex lost 1.35% to 7,967.62, South Korea’s Kospi fell 0.38% to 2,019.19, Singapore’s Straits Times Index xx, while Japan’s Nikkei 225 gained 0.07% to 10,018.24, the Shanghai Composite Index added 0.05% to 2,350.690 and Hong Kong’s Hang Seng index closed flat at 20,0668.86.

Meanwhile, European shares rose on Monday in a technical bounce, after recording their steepest weekly loss since the start of the year, as investors searched for bargains and positioned themselves for a potential strong German Ifo figure.

On Bursa Malaysia, Carlsberg was the top loser and fell 26 sen to RM10.20, Jaya Tiasa 22 seen to RM8.08, Chin teck Plantations fell 20 sen to RM9.10, Warisan down 19 sen to RM2.41, Tenaga lost 18 sen to RM6.50, JT International and Litrak lost 16 sen each to RM6.60 and RM3.94, Far East 15 sen to RM7.40 while AirAsia fell 13 sen to RM3.46.

Among plantations, Genting Plantations lost 22 sen to RM9.25, while KLK and IOI Corp fell four sen each to RM23.86 and RM5.34.

Among the gainers, Dutch Lady added 42 sen to RM31.40, SMPC up 28 sen to RM1.84, Aeon 25 sen to RM9.40, BAT 20 sen to RM54, Supercomnet added 19.5 sen to 49.5 sen, PUC and Hartalega 14 sen each to 29 sen and RM8.09, Unisem 13 sen to RM1.46, HLFG 12 sen to RM12.12 while Malayan Flour Mills was up 11 sen to RM4.44.

The actives included Focus, metronic, Supercomnet, Ariantec, Naim Indah Corp, Flonic and Karambunai.



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TM targets 400,000th customer for HSBB by year-end

KUALA LUMPUR (March 26): TELEKOM MALAYSIA BHD [] (TM) aims to hit the 400,000th customer base mark for its high-speed broadband service, UniFi, by year-end.

In a statement, its executive vice president, consumer, Imri Mokthar, said UniFi's customer base has been growing rapidly, surpassing the 300,000 mark on Monday, which was its second anniversary of the launch.

"UniFi is now enjoying a take-up rate of over 20 per cent of the premises passed, surpassing our initial estimates and expectations of eight to 10 per cent.

"The service is currently available at 79 exchanges areas covering over 1.18 million premises. The areas include 62 in Klang Valley, Penang (3), Kedah (2), Johor (9), Melaka (1), Negeri Sembilan (1) and Perak (1)," he said.

Imri said TM expected the UniFi's take-up rate to continue to increase to 50 per cent of premises passed in the next three to five years.



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Unisem, MPI rally on rating, target price upgrades

KUALA LUMPUR (March 26) : Shares of semiconductor manufacturers UNISEM (M) BHD [] and MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI) rallied on Monday after CIMB Investment Bank Bhd Research upgraded its recommendation and fair values for both stocks.

This is in anticipation of a recovery in the global semiconductor industry, according to CIMB Research.

Unisem rose 11% or 15 sen to RM1.48 at 3.26pm on Monday while MPI gained 3% or 10 sen to RM3.17 to be among the top gainers across the local bourse.

CIMB Research, in a note on Monday, said it had upgraded Unisem from “underperform” to “outperform” and raised its fair value by 87% from RM1 to RM1.87 for the stock. The research house also increased its FY12 to FY14 earnings forecasts for the semiconductor manufacturer by 7% to 19%.

Similarly, the research firm also upgraded MPI from “underperform” to “outperform” and raised its target price for the stock from RM2.79 to RM4.08, up 46%.



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